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Trade war and China's reform

By Zegang Ren - posted Thursday, 4 October 2018


There is no doubt that the trade war has suddenly exposed China to various dangers which predominantly originated from mishandling of various domestic issues. In fact China's capability in standing up against the US pressure is primarily dependent on if China can correct these mishandling in a timely fashion.

Ignorance of the inequality in association with the introduction of market economy and over confidence in dealing with the side effects of interaction between political power and capital are the two fundamental embryos breeding so many problems in China.

Transparency and democratic tools will be urgently needed in order to control the abuse of government power and deal with market failure. However this should not be interpreted as establishment of multiparty parliament system in China, which is unfit for China at this stage.

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If China could find a way to control the downside in association with the integration of the one party state with the market, China's model would be more attractive. If not, China's future will be very dim.

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About the Author

Ren Zegang is an immigrant to Australia from China and the editor of reformchina.com.



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